Conversational Commerce: Why Consumers Are Embracing Voice Assistants

1. By Capgemini Digital Transformation Institute Digital Transformation Institute Conversational Commerce Why Consumers Are Embracing Voice Assistants in Their Lives

2. Introduction Conversational Commerce, consumer purchase of products and services via voice assistants such as Google Assistant, Amazon’s Alexa, and Apple’s Siri, will revolutionize how consumers and brands interact in ways not witnessed since the dawn of e-Commerce. It is so much more than a new interface or an additional channel in an omni-channel world. It promises to be a curator of services and experiences that intelligently meet needs and engage consumers emotionally—anytime, anywhere. We are still at the very beginnings of Conversational Commerce, but the extraordinarily rapid early adoption will drive investment and innovation, consequently enabling an entirely new way for brands to build relationships of value with consumers. These relationships will seamlessly extend across consumers’ relationship lifecycle with brands—from marketing to sales and service—creating an entirely new, more instinctive way for consumers to engage with brands. As the number and variety of devices supporting voice-based applications grows, the consumer will be connected in a multitude of locations—at home, on the go, and in the store. This ubiquity of connection will allow retailers specifically to extend the relationships they have with consumers beyond the four walls of their stores—we call this boundary-less commerce. The very nature of a dialog between a consumer and a brand will create a rich source of information and insight—insight that allows for heightened contextual understanding and empathy on the part of brands, presenting an unparalleled opportunity to develop relevancy, trust, and emotion-based connections with consumers. Brands can use this new-found customer intimacy to drive brand preference and affiliation, the highest form of loyalty. As you will see in this report from the Digital Transformation Institute and in the companion point-of-view document created by Capgemini in partnership with the MIT and Intel,1 consumers are ready and eager to interact in this way. They are ready to engage with and share information with the brands that offer them value in return. There are, of course, questions and concerns, and the brands that succeed will be those who both reassure and deliver the anticipated value to their consumers. The past year has been decisive for Conversational Commerce. While previously restricted to chatbots accessed via messaging apps for shopping, the definition of Conversational Commerce has significantly expanded with the arrival of voice-based personal assistants.2 As Figure 1 shows, 2017 saw a range of key developments that have stirred consumer and business interest (see Figure 1). • More than forty large retailers, such as Walmart, Target, Costco, Walgreens, and Home Depot, have partnered with Google to introduce voice-based shopping to consumers via Google Express.3 Google has coupled this effort by adding support to enable Google Home4 users to place voice- activated orders for select stores.5 • Several smart speakers enabled by voice assistants have launched or expanded their portfolios. Recently, Amazon launched a new generation of devices as part of its “Echo” line, which now offer improved conversational facility, better memory, improved voice recognition, and an experience that is more akin to natural human interactions.6 Shortly thereafter, Google launched new Google Home devices.7 These capitalize on Google’s search advantage, and tie in multiple Google accounts, to offer users a more synchronized experience.8 Moreover, voice assistants are being made available in more and more devices. BMW announced that Alexa will be available in its 2018 model year cars starting mid-2018.9 Earlier in 2017, Google added its virtual assistant to Android wear watches.10 • The technology and functionality of voice assistants are going from strength to strength. Amazon’s Echo has app- based skills that provide users with support in areas ranging from home automation to health and fitness, and as of September 2017, there were more than 20,000 of these 2 Conversational Commerce

3. skills,11 with 40% of them added in just a three-month spell between June and August 2017.12 Google’s voice recognition accuracy has surpassed human levels. Microsoft’s speech recognition tech matched the accuracy of a group of human transcribers, beating its own previous record. These advances, coupled with increasing consumer appetite for voice devices, points to a clear opportunity for brands and retailers. To understand consumer interest in Conversational Commerce in detail, and its implications for businesses, we conducted a survey of over 5,000 consumers. We also undertook focus group discussions with consumers in the US, the UK, France, and Germany, examining their Conversational Commerce interactions, their preferences, and their expectations. The research methodology at the end of the report provides more details on our approach. Our research findings show that voice assistants are on the cusp of transforming commerce. In this research, we: 1. Outline why voice assistants are about to revolutionize commerce, based on the functions, use frequency and context in which consumers like to use voice assistants 2. Analyze why consumers love voice assistants, depending on their needs and preferences 3. Ascertain the concrete benefits of Conversational Commerce for retailers, consumer products, and services organizations 4. Recommend an action plan for organizations to devise a sound Conversational Commerce strategy. Figure 1. Advances in voice recognition have fueled growth in voice assistants and their commercial applications Source: Amazon, Google, Microsoft, Apple, and other company websites and press releases. Kleiner Perkins, Internet Trends 2017, May 2017. Google voice recognition data as of 5/17/17 and refers to recognition accuracy for English language. Wordaccuracyrate(%) Google voice recognition accuracy 2013-17 Human accuracy threshold 100% 95% 90% 80% 2013 2014 2015 2016 2017 Dec. 2016: Amazon Alexa devices become the best-selling products across all categories on Amazon.com during the holiday season June 2017: Apple Siri available on 375 million devices Sep 2017: Alexa Skills cross 20,000 mark in US Nov. 2014: Amazon launches Amazon Echo for Prime subscribers Jul. 2016: Amazon launches voice ordering via Amazon Echo for Prime products 2017: Retailers foray into voice ordering—Walmart, Target, Sephora, Ocado, Costco, Walgreens, Petsmart, among many others Oct. 2017: Amazon and Google launch new classes of smart speakers and extend them to new geographies June 2014: Domino’s launches voice ordering via its mobile apps May. 2016: Google Home launches, powered by Google Assistant 3

4. Voice assistants are about to revolutionize commerce Voice assistants will become a dominant mode of consumer interaction in three years Our research found that consumers see a future where they will be increasingly willing to use voice assistants instead of websites or physical shops. Today, around a quarter (24%) say they would use a voice assistant rather than a website. However, three years from now, that rises to 40% (see Figure 2). And close to a third (31%) would prefer to use a voice assistant instead of visiting a shop or a bank branch in the future, compared to 20% today. Figure 2. Consumers are developing a strong preference for interacting with companies via voice assistants Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany. 24% 20% 40% 31% Today Three years from now I will use a voice assistant instead of a mobile app or a website (Company websites or apps, Amazon) I will use a voice assistant instead of visiting a shop or a bank branch Share of consumers who would prefer voice assistants over apps or physical retail stores 40% Consumers who will use a voice assistant instead of a mobile app or a website, three years from now 4 Conversational Commerce

5. As Figure 3 shows, a majority of consumers (51%) are already users of voice assistants, and interacting with voice assistants via smartphones (81%) is the dominant mode of use. Twenty- one percent of consumers have been using voice assistants from devices other than phones or smart speakers. It is evident that voice assistants are likely to be used for commerce through devices other than phones or smart speakers in the future. Consumers are already using voice assistants for making purchases Figure 3. Majority of consumers already use voice assistants Source: Capgemini Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany. We define users of voice assistants as those respondents who have used voice assistants at least once in any form—via smartphones, smart speakers, screen-based, and other devices enabled with voice assistants (not smartphones); everyone else is termed a non-user. Users (N = 2,558) All consumers (N = 5,041) Users Non-users Voice assistant user base Mode of Usage Used it via a smartphone (e.g., Siri, Cortana, Google Assistant) Used it via a smart speaker (e.g., Amazon Echo/Google home) that I own Used it via screen based device (not phones) (e.g., Amazon Echo Show/Amazon Fire TV) Used it via a smart speaker that I do not own Others 81% 25% 21% 7% 3% 49% 51% 81% Users of voice assistants who have used them via smartphones 5

6. Users have adopted voice assistants for a variety of functions. More than four in five consumers have used voice assistants for seeking information (82%) and two in three have used them for playing music (67%). Usage has also extended to commerce-related activities.13 Over a third (35%) have bought products like groceries, homecare, and clothes (see Figure 4). Figure 4. Users of voice assistants have already been adopting them for making purchases Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,558 users in the US, UK, France, and Germany. 82% 67% 36% 35% 34% 28% 28% 31% Level of usage across a variety of functions Playing music or streaming videos Accessing customer service/support for a brand Bought products (groceries/home care/clothes) Ordered a meal Made a payment/sent money Booked an Uber or any taxi service Controlling smart home devices Consumer Products & Retail Services Do it regularly or have done it a few times Seeking information—news, weather, recipes, appointments, relationship advice, oﬀers 35% Users who have bought products such as groceries and clothes via voice assistants 6 Conversational Commerce

7. Our research shows developments in a number of areas: Product purchases Users also shared the product categories they would be most interested in. More than half (52%) would be interested in buying electronics via voice assistants, with significant interest also shown in areas such as clothing, groceries, and home furnishings (see Figure 5). These existing and potential behaviors tie in with some of the advances already made by retailers and brands to launch voice shopping via partnerships with tech platforms like Google Assistant and Amazon’s Alexa: • Walmart partnered with Google to provide highly personalized voice shopping. It recently launched its voice platform to allow consumers to shop more than two million Walmart items through voice.14 • The French cosmetics retailer, Sephora, recently launched its app on Google Assistant, Google’s voice-activated virtual personal assistant.15 The assistant allows consumers to book beauty services, with more functions soon to come. • Ocado became the first British retailer to launch voice ordering capability on Amazon Alexa in August 2017.16 Using this Alexa Skill, customers can also add products to an existing order and seek information on in-season products and how to use them in recipes. Figure 5. Users’ interest in using voice assistants for purchase is high across most product and service categories Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,558 users in the US, UK, France, and Germany. Level of interest in using voice assistants for purchasing the following 52% 49% 46% 45% 45% 41% 56% 54% 44% Electronics Other specialty products (e.g., books, pet supplies, etc.) Clothing Groceries, food and beverages Personal care Ordering meals Consumer Products & Retail Services Home furnishings and household care Other specialty services (booking a taxi, music) Banking (sending money to people, paying credit card bills) 56% Users who are interested in ordering meals from restaurants using voice assistants 7

8. Services—Meal and restaurant ordering We saw earlier how over a third of users (34%) have already ordered a meal using a voice assistant. As Figure 5 also shows, this behavior is set to increase, with a majority of consumers (56%) saying they would be interested in making restaurant orders through voice assistants. Major pizza take-away pioneer, Domino’s, has been an innovator in this field. As early as 2014, Domino’s Pizza launched voice ordering via its iPhone and Android apps.17 The in-app voice assistant, Dom, can take users’ order for carryout or delivery, handle saved orders, suggest additions to a meal, and find coupons for the best deals.18 Others are developing their own innovations. Early in 2017, Starbucks launched voice ordering capabilities via mobile app and a reorder skill on Amazon’s Alexa platform. Users can simply say: “Alexa, order my Starbucks” to order their usual items.19 Services—Banking and Insurance Our research showed that 28% users have already used a voice assistant to make a payment or send money, and we found interest in this area increasing, with 44% expressing an interest in using voice assistants for bank transactions (see Figure 5). Capital One has been a pioneer in adopting voice in the financial services sector. It has launched an Amazon Alexa Skill to allow consumers to access their account information and even pay their credit card bill simply by using voice commands.20 A large insurance provider in Europe, a Capgemini client, implemented a voice assistant to help its customers 24/7 on all channels (telephone, apps, chat among others). The voice assistant used natural language to converse with users and provided them with fast, accurate and personalized answers in addition to anticipating their needs. This not only enhanced customer experience but also improved operational efficiency for customer service representatives by allowing them to focus on more value-added requests and pre-qualify some of customers’ demands through an exchange made by the voice assistant in advance. 44% Users who are interested in using voice assistants for making banking transactions 8 Conversational Commerce

9. Our research confirms that consumer interest in using voice assistants for purchase will strengthen. In three years’ time, active users of voice assistants expect 18% of their total expenditure to take place via voice assistant, a sixfold increase from today (see Figure 6). Even non-users—those who do not use voice assistants today and hence do not spend anything via voice assistants—expect to devote as much as 7% of their total spending via voice assistants on average. Consumers will be voting with their wallets in favor of voice assistants over other channels Figure 6. Spending via voice assistants is expected to grow as much as sixfold in three years for users of voices assistants Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany. 3% 38% 59% 18% 37% 29% 71% 45% 7% 31% 62% Today Three years from now Today Three years from now Voice assistant users Non-users Physical stores Website/apps Voice assistants Change in spending mix between physical stores, websites/apps, and voice assistants, today and three years from now 6X The increase in share of users’ spending via voice assistants amongst spending via all channels 9

10. • 82% users say fast and accurate replies are the most compelling feature that influences the use of voice assistants. • More than two-thirds (69%) prefer using voice assistants in their living rooms, while only 32% of users are comfortable using voice assistants around unfamiliar people, suggesting there is a shyness among users to engage in dialog in public. • Safety and security of their personal data is of most value to them in their interactions with voice assistants. • Close to one in five have an annual pre-tax household income of more than $100K. • The largest category of users falls in the age bracket of 33–45 years. Profiling voice assistant users Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,558 users in the US, UK, France, and Germany. Pre-tax annual household income 12%Less than $20,000 9%$100,000–$139,999 8%$140,000 or more 28%$60,000–$99,999 42%$20,000–$59,999 Age Group 28% 6% 25% 16% 18–21 22–32 33–45 46–60 61+ 25% Do friends and family come to you for assistance and advice when it comes to technology? 33% 47% 21% Yes, every time A few times Rarely/ never Top three criteria that add value • Safety and security of data (71%) • Saving money through deals, promotions (68%) • Saving time in the overall purchase process (64%) Preferred location for interaction Preferred social setting Fast and accurate replies Understanding diction and accent Relevancy of recommendations 82% 81% 75% Top three features compelling the use of voice assistants • Living room, 69% • Kitchen, 61% • With close friends or family, 50% • “When I am alone," 46% 10 Conversational Commerce

11. As our voice assistant user profile displays, there is a great opportunity to engage in a dialog when the consumer feels comfortable and feels at “home.” Conversational Commerce can extend the relationship between the retailer and the consumer beyond the store since the majority of users prefer their home for interacting with voice assistants, but it can also be used to enhance the relationship in the store. In the future, over a third of consumers would be willing to replace customer support or shop sales support with a personalized voice assistant (see Figure 7) in order to enhance their in-store experience. Consumers’ common complaint with today’s interactions is that they are slow and inconvenient. As a US consumer in one of our focus group discussions told us: “I think if I had a choice, I would use a voice assistant. It would be faster and less stressful. I have had some really hard time sometimes with customer support. I think the voice assistants could take away a lot of stress and headache.” The idea of interacting with voice assistants instead of salespeople also resonated with some consumers in the UK, with one telling us: “If I need to locate something in the shop, I would rather have a voice assistant help me find it than find a salesperson.” Conversational Commerce can be used to enhance the relationship between the retailer and consumer in the store Figure 7. Share of respondents who would replace human interactions with a personalized voice assistant today, and three years from now Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany, ranked by difference between three years from now and today. 26% 38% I will replace the following human interactions for a personalized voice assistant experience: 24% 35% 20% 29% 18% 28% 19% 27% Customer support/ call centers Salespersons in store Check-out counter Tele-bankers/ tele-callers Today Three years from now Relationship managers (banking) 11

12. Why consumers love voice assistants Users are satisfied with their voice interactions Consumers who use voice assistants are very positive about the customer experience. As Figure 8 shows, they are positive about activities, from making payments to buying groceries. Overall, 71% of users are satisfied, and when we segment that satisfaction score by device, smartphones score highest. This sentiment is echoed in our focus group discussions: • “There are no restrictions with the time and places for use—that is the wonderful thing about voice assistants. I haven’t made any purchases yet, but I intend to. I regard it as a very friendly tool. I currently use them to find train times and do research for my work.” —UK focus group participant • “I started using Alexa because I need to use a medical device four times a day and I would set reminders on it. Now, I also make purchases through Alexa, and it is rapidly learning new things with time.” —US focus group participant • “The other day I was in Cologne for a job interview, and it was easier to just talk into the cell phone and ask where to go instead of looking at street names.” —German focus group participant Figure 8. More than four in five users are satisfied with their voice assistant experience for purchase-related activities Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,558 users in the US, UK, France, and Germany. Level of satisfaction for users who use the following activities regularly or a few times Satisﬁed with the experience Made a payment/sent money (N = 727) 87% Ordered a meal (N = 876) 87% Bought products (groceries/home care/ clothes) (N = 885) 86% Booked an Uber or a cab (N = 713) 83% 12 Conversational Commerce

13. Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,558 users in the US, UK, France, and Germany. Smartphones lead in user satisfaction for use of voice assistants 71% 46% 61% 44% User satisfaction with voice assistants Users satisfied with at least one mode of using voice assistants Users satisfied with using voice assistants via smartphones Users satisfied with using voice-based speakers or devices Users satisfied with using voice and screen-based voice assistants (not phones) 13

14. Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany. Figure 9. Convenience and ability to multi-task top the list of reasons for preferring voice assistants over websites and apps Consumers like the convenience, speed, and the ability to multi-task Convenience (52%) and ability to do things hands free (48%) are the two biggest reasons for preferring voice assistants over mobile apps/websites (see Figure 9). As we heard during the focus groups: • “The biggest thing for me about voice assistants is to be able to do what I want to do hands off, like if I am cooking. In such situations I don’t want to touch the phone or the tablet and would just like to use the voice assistant for convenience.” —US focus group participant • “With two kids and a life that’s going so fast, I think it would save a lot of time to automate daily chores. For example, during driving, checking maps, or finding a parking space would be much more practical.” —French focus group participant I would prefer a voice assistant over a website or an app because: 52% 48% 41% 41% 38% 38% 37% 35% It is more convenient It allows me to multi-task and do things hands free It helps me automate my routine shopping tasks It feels more personalized to my needs It provides better deals/ oﬀers My data is more secure It feels like a more natural way to interact It feels more like speaking to a real person 41% Consumers who would prefer a voice assistant over a website or an app because it helps them automate their routine shopping tasks 14 Conversational Commerce

15. The fact that voice assistants are faster (49%) and more convenient (47%) are the major reasons for preferring them over physical stores (see Figure 10). This was confirmed in the focus groups: • “I would rather interact with the voice assistant, especially while making purchase orders. It would just make it more accurate, because with humans, they could write it down wrong or get the quantity incorrect or other factors.” —US focus group participant • A UK consumer outlining the convenience advantages for repeat purchases said: “When I am ordering my usual coffee at Starbucks, I would rather go with a voice assistant. It saves time and effort on my part. But if I am going to the bank, I would like a person to help me, because there could be greater complexity.” Figure 10. Speed and convenience top the list of reasons for preferring voice assistants over human interactions Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany. Reason I prefer voice assistant over human interactions in shops/call centers: 49% 47% 41% 40% 39% 38% 38% 38% 32% It is faster It is more convenient It provides greater choice It is better able to understand my concerns It provides better quality customer service It helps me automate my routine shopping tasks It helps me avoid interacting with a sales/ service representative It seems like a smarter way to shop It feels as real as speaking to a human being 49% Consumers who would prefer voice assistants over human interactions in shops/call centers because it is faster 15

16. Voice assistants’ understanding of context is very compelling to users In human interaction, context plays a crucial role. As voice assistants start to imitate human discourse, we as consumers will expect them not just to understand the subject, but recognize and respond to our social setting. As a UK focus group consumer said: “It depends on the context. I would be happy to use voice assistants for retail because they wouldn’t try to hard sell (or I hope they wouldn’t). But I would much rather have a human contact for something like a pharmacy.” More than two-thirds of users would prefer voices assistants to have features that display an understanding of context, such as understanding different accents and providing relevant recommendations that are personalized to the specific user (see Figure 11). Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,558 users in the US, UK, France, and Germany. Figure 11. More than two-third of users value voice assistants’ understanding of their context Features that will make voice assistants more compelling to use 81% 75% 75% 66% 66% 60% They should understand my diction and accent They should provide relevant recommendations They should be able to hold a sensible conversation They should be able to personalize the experience for me They should be able to contribute more to a conversation e.g., volunteer with additional relevant information They should be able to anticipate my needs 81% Consumers believe voice assistants’ understanding of diction and accent would be the most compelling feature 16 Conversational Commerce

17. Non-users have some apprehension about voice assistants, with safety and security of personal data being the top concern. What hinders non-users from adopting voice assistants? Figure 12. Top concerns for the use of voice assistants among non-users Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,483 non-users in the US, UK, France, and Germany, ranked by difference between three years from now and today. 65% 61% 59% 59% 57% 54% 48% I don’t feel the need to interact with any voice assistant It does not have any incentives for me I feel uncomfortable talking to a machine It does not understand me or my reactions I don’t trust voice assistants with the safety and security of my personal data Voice assistants are intrusive and seek too much personal information Only voice-based voice assistants don’t allow me to visualize information/choices 17

18. In our survey, we also asked respondents if they would be willing to trust voice assistants to make a pizza purchase decision (selection, order, and payment) on their behalf. We found that 74% of non-users were skeptical about this idea, as compared to 41% of users. Consumers lacked trust that these technologies would make a decision that was in the users’ interests. Some of the concerns we heard from our survey participants were: • “I prefer to indicate my choices to a human being myself, especially since my preferences can change daily.” • “I would not use a voice assistant as I feel it would take over one’s life. I am perfectly capable of doing things for myself and would not want a machine to do things for me.” • “I am worried about the disclosure of my data, and I would like to be assured by the company that my data will not be disclosed to someone.” Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 1,840 non-users who disapprove in the US, UK, France, and Germany. Figure 13. Reasons why non-users disapprove of voice assistants making purchase decisions for them 16% 17% 19% 23% 37% I do not trust Google/Siri/Amazon to make a decision with my interest in mind I fear that someone might impersonate me and order without my knowledge I would rather set-up my preferred order on my ﬁrst transaction and have my voice assistant use it for future orders I would like to know what criteria the voice assistant is basing this decision on I would like to try it a few times before I can start trusting my voice assistant enough to order on its own 18 Conversational Commerce

19. Conversational Commerce yields concrete benefits for retailers and brands Providing voice assistants can significantly improve brands’ Net Promoter Scores (NPS® )# . Among users, the NPS® of a brand would improve by nineteen percentage points when it provides a personal voice assistant globally (see Figure 14). This improvement is particularly pronounced in the US, where the NPS® would improve by twenty-five percentage points for a brand which offers a voice assistant. This is a real opportunity for brands to drive customer satisfaction among voice assistant users. Figure 14. Providing a voice assistant to consumers elevates a brand’s NPS® by nearly 20 points for voice assistant users We asked the respondents the standard NPS® question on how likely are they to recommend a company to a friend or colleague, in two scenarios: 1. The company provides a personal voice assistant, and 2. The company doesn’t provide a personal voice assistant. Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,558 users in the US, UK, France and Germany. # Net Promoter, NPS® , and the NPS® -related emoticons are registered service marks, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld Change in NPS® for brands that provide a voice assistant over brands that do not — by country NPS® without voice assistants (from users) pp = percentage points NPS® with voice assistants (from users) Average (all four countries) United States Germany United Kingdom France 4 pp increase16 pp increase16 pp increase25 pp increase19 pp increase 25points NPS® advantage among voice assistant users for a brand in US that provides a voice assistant to consumers vis-a-vis a brand that doesn’t 19

20. Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,558 users in the US, UK, France, and Germany. Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,483 non-users in the US, UK, France, and Germany. Figure 15. Users of voice assistants have rewarded organizations providing good voice assistant experience; non-users will follow suit Organizations providing good voice assistant experiences will generate more business and positive word-of-mouth Users of voice assistants give organizations with a strong voice assistant experience more business and positive word-of-mouth. Non-users are expected to do the same (see Figure 15). On having a good experience with a personal voice assistant, users of voice assistants have: Have done it a few times Have done it regularly Shared their positive experiences with friends and family Transacted more frequently with the brand Increased their spend with the brand Purchased more products from the brand Provided high ratings for the brand and shared positive feedback on social media 37% 21% 35% 16% 13% 32% 15% 32% 17% 30% 35% 28% 27% 24% 22% Share positive experiences with friends and family Transact more frequently with the brand Purchase more products from the brand Increase spend with the brand On having a good experience with a personal voice assistant, a non-user of voice assistants would: Provide high ratings for the brand and share positive feedback on social media 20 Conversational Commerce

21. Percentages indicate the amount that respondents are willing to increase, on average, upon receiving a good experience with a personal voice assistant. Question to users: Have you done the following on having a good experience with a voice assistant? Increased your spend with the brand. Question to non-users: What are you most likely to do if you have a good experience with a personal voice assistant? To both users and non- users, answering the above question positively, the follow up question asked was: How much more will you be willing to spend for receiving a better experience with voice assistants? Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany. Figure 16. Users of voice assistants will reward organizations with increased spending for receiving a better experience with voice assistants Retailers and brands that provide a good voice assistant experience will secure bigger consumer spend In return for receiving a good voice assistant experience, consumers are willing to increase their spending with a brand by 5% on average. When we look at two segments—consumer products and retail, and services—we find that: • On average, those users who are using voice assistants today will increase their spending by 8% for both segments. • Those overall consumers who are classed as “promoters” for NPS® purposes have a significantly higher propensity to increase their spend—16% for consumer products and retail, and 15% for services. Intent to increase spending on consumer products and retail, by NPS® classiﬁcation 5% 16% All Respondents Users Average for the group Promoters 17% 8% Intent to increase spending on services, by NPS® classiﬁcation 5% 15% All Respondents Users Average for the group Promoters 17% 8% 16% Amount of increase in spending on consumer products and retail by NPS® promoters of a brand upon receiving a better experience with voice assistants 21

22. Conversational Commerce Spenders Decoded Who are the spenders? We have defined spenders as those users who have: • Regularly used voice assistants for any of the following activities: - buying products (groceries/home care/clothes) - ordering meals - making payments/money transfers - booking an Uber/cab. • Spent a positive amount of money via voice assistants Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 543 spenders who are users, have used voice assistants regularly for commerce, and have spent positive amounts via voice assistants; in the US, UK, France, and Germany. Age Group 33% 6% 47% 3% 18–21 22–32 33–45 46–60 61+ 11% • Two-thirds of this group is based out of urban areas (66%) 8 out of 10 prefer to use the voice assistants in • Living room (88%) and • On the go (e.g., in car, while biking, on the train) (85%) 89% of these would like the voice assistants to • Be able to interpret photos, bar codes, QR scans, etc. to fetch relevant information • Understand their diction and accent, provide fast, accurate replies and relevant recommendations 61% 56% 55% 43% Almost a majority of spenders have regularly done the following activities Ordered a meal Made a payment/ sent money Bought products (groceries/ home care/clothes) Booked an Uber or any taxi service Spenders as a proportion of users 27% GermanyUnited States 15% France 14% 12% United Kingdom Average (all four countries) 21% • More than two-thirds of the group are experts on technology, with friends and family reaching out to them for advice (69%) 22 Conversational Commerce

23. Figure 17. Users with a high affinity for voice assistants also drive higher benefits to retailers and brands Organizations that focus on priority consumer segments will derive maximum value As we saw earlier, consumers are using voice assistants for a variety of tasks. Retailers and brands can derive the maximum value by targeting those users who prefer voice assistants for purchases of products (e.g., groceries/home care/clothes) or services (such as booking a cab or making a payment/sending money or ordering meals). To identify the characteristics of this target group, we looked at the following: 1. Affinity for voice assistants—which includes preference for voice assistants over websites/mobile apps/physical stores and various tasks for which the consumer is currently using voice assistants and the frequency of use 2. Benefits to retailers and brands—the proportion of the users’ current spends via voice assistants as well as the NPS® scores. The segment that provides the highest benefits to retailers and brands—the Voice Sprinters—is more than one-third (36%) of our user base (see Figure 17). Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 2,558 users in the US, UK, France, and Germany. HighLow High Aﬃnity for voice assistants Beneﬁtstoretailersandbrands Voice Sprinters 12% 39% 36% 13% 23

24. How can retailers and brands devise a sound Conversational Commerce strategy? Organizations need to focus on four key areas for Conversational Commerce From our experience working with global clients on devising and implementing Digital Customer Experience (DCX) strategy and our recent development of a Conversational Commerce framework, we believe that delivering a successful Conversational Commerce strategy requires effort in four key areas (see Figure 18). While organizations start to build and integrate these solutions, it is key that they start small and take an iterative, test and learn approach to implement a successful voice commerce strategy. Figure 18. Four key areas of focus for building a robust Conversational Commerce strategy Source: Capgemini Digital Transformation Institute Analysis. Start small and have an iterative approach to solve for four key areas of Conversational Commerce Prepare the organization for the new voice channel • Make conversational commerce a key part of the overall DCX strategy • Establish leadership and a governance mechanism dedicated to voice commerce • Start sensitizing and upskilling the workforce Design and execute compelling voice customer experiences • Design the conversational experience based on the target group’s needs and preferences • For users of voice assistants, align incentives to encourage greater use of voice assistants • Localize experiences for geographical market • Ensure that the exchange of value is clearly in place. • Seamlessly bring together consumer data, technologies, and processes for the new voice channel • Make the experience personalized and adaptive across channels • Take proactive steps to ensure privacy and security of consumer data, especially for non-users/ﬁrst-time users. • Conduct detailed research into your customer base to understand their needs, preferences, and usage patterns • Re-examine the key customer journeys and assess how voice interfaces might improve the experience for the customer • Harness the insights to drive intimacy and ever increasing relevancy. • Build eﬀective supply chain management processes • Deploy a communication and marketing plan to build a loyal voice user base • Focus on customer relationship management to ensure retention. Apply conversational intelligence to understand your target consumers Devise sound business operations voice solutions Implement technology solutions that seamlessly integrate voice 24 Conversational Commerce

25. Design and execute compelling voice customer experiences In our recently published loyalty research, we found that emotions have the strongest impact on loyalty and the ability to connect on a human level is what drives long-term customer engagement and ultimately loyalty.21 Conversational interfaces present brands with a unique opportunity to act like people and create an emotional connection with their consumer through voice channels, thus enhancing the customer experience.22 Executing a compelling customer experience strategy demands the need for having a view to customers’ expectations. Depending on the segments that brands choose to target, it is imperative that they look at the target segments’ needs and build customer experiences accordingly. A study conducted by Cornell University found that people’s perceptions of a “machine-generated voice” are influenced by its human-like traits. Speech functionality was deemed to be especially critical for conversational agents, as it had an impact on how natural the conversation was perceived to be, by the user.23 The majority (66%) of respondents in our survey said that they would feel compelled to use voice assistants if they are able to understand the respondents’ diction and accent. This sentiment was echoed during our focus group discussion as well. As one UK participant put it: “My apprehension is that it doesn’t always understand me perfectly—it doesn’t understand my speech.” It is thus critical for organizations to localize the content for different geographical markets, which could help increase adoption. Organizations must also ensure that the interaction offered by the voice experience is sympathetic to context, fast, accurate, and relevant (see Figure 19). The experience design must also remove hindrances that keep potential users from becoming users of Conversational Commerce. As Karim Lourci, COO of Smartly.ai, said: “Something that is particular to voice assistance is that it’s enabled new segments to use technology. For example, older individuals who are not familiar with digital and technology can easily use voice assistance. The customer expects a natural experience.” While removing hindrances, organizations must deliver tangible value to consumers for using voice assistants. One of our previous researches found that consumers would be more inclined to share their data with services that provide them higher value and more tangible benefits.24 Figure 19. Consider leveraging top features of voice assistants that would compel consumers to use them more Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany. They should provide fast and accurate replies Top three features compelling the use of voice assistants 92% 91% 91% Voice Sprinters All consumers They should understand my diction and accent They should provide relevant recommendations 59% 67%66% 25

26. Numbers indicate average score of the group of respondents for each factor on a scale of 1 = the least value to 7 = the highest value. Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany. Figure 20. Ascertain factors that your target consumers value the most Apply conversational intelligence to understand your target consumers Brands that are currently on digital channels have access to information on consumers’ likes and dislikes. This access to information is amplified in Conversational Commerce where brands engage in a dialog with its consumers and have access to shopper data on their needs, preferences, and the context that drives purchase. All of this available information can be converted to usable intelligence and insights through advances in artificial intelligence— natural language processing, cognitive computing, speech and voice recognition, and machine and deep learning. The key to building a compelling customer experience is to use the derived conversational intelligence to further tailor the experience for consumer segments that brands would like to target. We suggest focusing on Voice Sprinters—the set of consumers that exhibit both a high affinity for voice and who are more likely to drive higher benefits to brands (i.e., higher customer satisfaction and level of spend via voice assistants). Once a target segment has been identified, organizations must research the segment to understand needs, preferences, and usage patterns to help design the right conversational experiences. For instance, receiving a personalized service is much more valuable to Voice Sprinters compared to all consumers (see Figure 20). How consumers value the following while interacting with a voice assistant (top three factors) Voice Sprinters All consumers The safety and security of my data Saving money through deals, promotions Receiving a personalized service 5.9 5.3 5.8 5.1 5.5 4.6 26 Conversational Commerce

27. Devise sound business operations voice solutions The success of Conversational Commerce cannot be seen in isolation but needs to be viewed in collaboration with other channels (brick-and-mortar stores, online stores, apps) and the brands’ efforts in omni-channel fulfillment. Organizations need to ensure robust integration of the voice channel with the internal business operations of the organization, supply chain, order management, customer relationship management, and marketing strategy. Large traditional organizations that have spent years in selling products and services through physical stores and/or branches are faced with steady but less agile supply chains.25 However, Marc Lore, CEO of Walmart’s US e-commerce business, views these as an asset rather than a liability in a future of voice activated commerce.26 Doubling the stores as distribution centers and building on last-mile delivery systems for orders placed through voice channels is a capability brands and retailers need to invest in. On-time delivery and effective supply chain and order management will be critical for the success of its voice channel. In our survey, 61% of non-users do not feel the need to interact with any voice assistant. This displays a clear gap in awareness of the potential of voice assistants and may require a persuasive marketing campaign to build a convincing case for taking up Conversational Commerce. Brands should invest in communicating to all consumers on the benefits of using voice assistants as a preferred mode of communication. Nearly half (49%) of our survey respondents would like to use voice assistants while checking delivery status while only one-third (35%) would like to use it for making a purchase (see Figure 21). Targeted marketing for these touch points along with greater awareness around purchase and transaction-related functionalities could boost the adoption of voice assistants. Figure 21. Build communication and marketing strategy based on preferred consumer touch points and brand voice offerings Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany. Touch points in the customer journey where consumers would like to interact with voice assistants 49% 45% 42% 42% 40% 40% 35% 34% Making a purchase Checking delivery status Making a shopping list Searching for products and services Adding items to a shopping cart from the shortlist Providing feedback for any product or service Using customer support for any product/ service Recommending the purchased product/service to others 49% Consumers who would like to check delivery status of their orders using voice assistants - the most across all other touch points with brands and retailers 27

28. Implement technology solutions that seamlessly integrate the voice assistant experience Prepare the organization for the new voice channel Technological advances in the field of artificial intelligence are making hyper-personalized customer experiences a reality through Conversational Commerce. Organizations need to tap into this potential and implement an “Experience Engine” that seamlessly brings together technologies, channels, processes, and consumer data. Retailers and brands are following multiple approaches to launch voice ordering capabilities. Retailers like Walmart and Target have partnered with Google to launch voice ordering via Google Home. Peapod, an online grocery delivery service, added a voice-activated Alexa Skill and launched a platform which allows consumers to type and/ or speak to build their shopping carts.27 Moreover, Artificial Intelligence (AI) technology also has a role to play in bringing all the channels together for the brand, whether the consumer accesses the brand through chatbots on messaging platforms, through voice assistants, through apps or websites, or through physical stores. Staples is addressing this challenge by using IBM’s Watson AI technology for bringing its various channels together through the Staples Easy System platform.28 As Karim Lourci suggests: “Technical constraints for implementing voice assistants have to be addressed very early by brands if they want to propose something useful and create a new experience for the customer.” How voice assistants are going to be perceived by consumers is also deeply linked to the use of technology for personalisation without crossing the lines of privacy. As we heard in our interview with an executive of Nissan Motor Co., Ltd earlier: “The trust that your customers have in you entirely drives the brand reputation of organizations. Privacy needs to be as defined by the customer, not the company. And it has to be protected at all costs.”29 Brands need to take proactive steps to ensure privacy and ensure security of consumer data. Over half (56%) of all respondents in our survey did not trust voice assistants with the safety and security of their personal data. Nearly half (48%) of the respondents felt that voice assistants are intrusive and seek too much personal information. Organizations need to alleviate these concerns by designing robust and transparent privacy policies. Consumers are willing to listen to what brands have to offer and also trade some of their privacy in exchange for incentives, as we heard from one of our consumers in the UK focus group: “What would alleviate my concerns would be if there were some sort of agreement reached by all companies that in case there’s a hack, all our data is secured. In terms of benefits, because brands are using our data, perhaps it will be fair to give us certain incentives, gift cards, vouchers, etc.” While organizations prepare for the new voice channel, it is critical that they be able to sustain, scale up, and mature in the platform. For this, Conversational Commerce needs to be a key part of the overall DCX strategy. Organizations that view Conversational Commerce as just another innovation project or underestimate its transformative nature stand to lose out on a huge opportunity. Organizations need to also rethink their governance and accountability to ensure that the right leadership is positioned to take the voice strategy forward. In addition, organizations must create a governance mechanism where progress is reviewed against a prioritized and defined roadmap. The top leadership will be responsible to orient the organization to prepare for change, as consumers are likely to replace current human interactions at retailers and brands with voice assistants. Preferences could differ significantly by target consumer group, indicating where change efforts should be focused. For instance, Voice Sprinters are much more likely to welcome voice replacing human interactions at call centers or in physical stores (see Figure 22). While investing in talent that has the skills to work on voice platforms, organizations must also start upskilling teams within the workforce that are currently undertaking the routine tasks that will be lost or reduced as a result of the transition to voice assistants. 28 Conversational Commerce

29. Bringing in such newer forms of interaction channels and associated technologies requires a change in the mindset of the leadership as well as the organization. It requires that organizations have a digital culture which is innovative, flexible and agile, thinks digital-first, collaborates well across functions, is open to the external ecosystem, and has a practice of data-driven decision-making. Our earlier research on digital culture found that only 34% of the organizations surveyed were digital culture leaders.30 Incumbents focusing on the voice channel must make an early start to orient their organization towards a digital mindset. Figure 22. Voice Sprinters are highly in favor of replacing human interactions with voice assistants Source: Capgemini Digital Transformation Institute, Conversational Commerce Survey, October–November 2017, N = 5,041 consumers in the US, UK, France, and Germany. Conclusion Conversational Commerce represents a significant opportunity for brands and retailers to interact with their consumers in new and innovative ways. Rapid technological advances, coupled with increasing consumer appetite for voice devices, is driving investment and innovation. Brands must harness this interaction opportunity to build relationships of value with consumers across the lifecycle and offer an entirely new, more instinctive way for consumers to engage with them. Likelihood of replacing the following human interactions with a voice assistant today Voice Sprinters All consumers 20% 65% Relationship managers (banking) 24% Sales people in the store 19% 61% Tele-bankers/ tele-callers 18% 62% Check-out counters 26% 70% Customer support/ call centers 67% 70% Share of Voice Sprinters who would like to replace their human interactions with customer support/call centers with voice assistants 29

30. Research Methodology For this research, we surveyed over 5,000 consumers in the US, the UK, France, and Germany. The quantitative research was complemented with four virtual focus group discussions, with eight to ten consumers per focus group, for each of the surveyed countries. The survey, as well as the focus group discussions, had a healthy mix of demographics and user and non-user respondents. Country Age Employment Status 4% 18% 23% 29% 26% 6% 25% 28% 25% 16% 2% 10% 19% 33% 36% All consumers N = 5,041 N = 1,007 N = 1,010 N = 1,003 N = 2,021 Users N = 2,558 Non-users N = 2,483 18–21 22–32 33–45 46–60 61+ 3% 5% 2% 25% 15% 34% 14% 13% 14%6% 7% 6%11% 11% 12% 41% 50% 31% 0% 20% 40% 60% 80% 100% All consumers (N = 5,041) Users (N = 2,558) Non-users (N = 2,483) Full-time Part-time employed Self-employed, consultant, or freelancer In the military Unemployed Retired Full-time student France Germany United Kingdom United States 20% 20% 20% 40% 30 Conversational Commerce

31. References 1. MIT-Intel-Capgemini, “Time to Talk—The future for brands is conversational,” January 2018 2. The focus of this research is on voice-driven Conversational Commerce given the significant consumer and business interest in the voice medium. 3. ZDNet, “Target partners with Google for voice shopping through Google Express,” October 2017 4. Google’s voice-activates smart speaker powered by Google Assistant 5. Google, “Start shopping with the Google Assistant on Google Home,” February 2017 6. The Guardian, “Amazon Echo second-generation review: smaller, cheaper and better,” November 2017 7. Business Insider, “Everything Google announced at its big hardware event,” October 2017 8. Wirecutter, “Amazon Echo vs. Google Home: Which Voice Controlled Speaker Is Best for You?” 9. Engadget, “BMW will offer Alexa voice control in its cars next year,” September 2017 10. BBC News, “Google adds virtual assistant to Android Wear watches,” February 2017 11. Amazon allows third parties like brands and developers to develop personalized voice experiences on Alexa, these are called Alexa Skills. 12. Voicebot.ai, “There are Now 20,000 Amazon Alexa Skills in the U.S.,” September 2017 13. For the purpose of this paper, we define products as all things that are covered in consumer products and retail; and we define services as ordering a meal, banking-related transactions, and booking a taxi service. 14. Walmart, “Walmart Makes Voice Shopping Even More Affordable with New Google Device,” October 2017 15. Fashion Network, “Sephora launches voice assistant app,” November 2017 16. Daily Mail, “‘Alexa, add milk’: Ocado becomes the first UK supermarket to launch an app for Amazon Echo that lets you buy food by calling out your shopping list,” August 2017 17. Press Release, “Domino’s Pizza® Continues as Technology Trailblazer, Launches Voice Ordering for its iPhone® and Android™ Apps,” June 2014 18. AdAge India, “Forget Siri, Domino’s Wants You to Meet Dom,” October 2014 19. Starbucks, “Starbucks debuts voice ordering,” January 2017 20. VentureBeat, “Amazon’s Alexa now lets Capital One customers manage finances using their voice,” March 2016 21. Capgemini Digital Transformation Institute, “Loyalty Deciphered—How Emotions Drive Genuine Engagement,” December 2017 22. MIT-Intel-Capgemini, “Time to Talk—The future for brands is conversational,” January 2018 23. Cornell University, “Alexa is my new BFF: Social Roles, User Satisfaction, and Personification of the Amazon Echo,” May 2017 24. Capgemini Digital Transformation Institute, “The Currency of Trust—Why Banks and Insurers Must Make Customer Data Safer and More Secure,” February, 2017 25. Forbes, “Google/Walmart: The Brutal Future of Retail Supply Chains,” August 2017 26. National Retail Foundation, “How Walmart Keeps Its Innovative Edge,” September 2017 27. Bloomberg, “Peapod Announces Chat-To-Cart™ Platform from StorePower,” December 2017 28. BusinessWire, “Staples’ “Easy Button” Comes to Life with IBM Watson,” October 2016 29. Capgemini Digital Transformation Institute, Digital Transformation Review: Crafting a Compelling Digital Customer Experience,” August 2014 30. Capgemini Digital Transformation Review, “The Digital Culture Challenge: Closing the Employee-Leadership Gap,” June 2017 31

32. About the Authors The Digital Transformation Institute The Digital Transformation Institute is Capgemini’s in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers in the United Kingdom, India, and the United States. dti.in@capgemini.com Digital Transformation Institute The authors would like to especially thank Subrahmanyam KVJ, Marisa Slatter, Ramya Krishna Puttur, and Shahul Nath from Capgemini Digital Transformation Institute for their contributions to this report. The authors would also like to thank Shannon Warner from Capgemini Consulting US; Max Brüggemann, Sophie König from Capgemini Consulting Germany; Florent Guillaume from Capgemini Consulting France; Ron Tolido, Gwendolyn Graman, Frank Wammes from Capgemini Netherlands; Lorna Neville from Capgemini UK; Saugata Ghosh from Capgemini Australia; Thomas Saint-Hilaire, Herve Leroux from Prosodie; and Fatim Bellmane, Valentina Pedrazzini from Backelite; for their contribution to this research. Kees Jacobs Vice-President, Capgemini kees.jacobs@capgemini.com Kees is an industry recognized practitioner with Capgemini’s global sector for consumer products and retail, with more than 25 years of experience in these industries. Kees is responsible for Capgemini’s strategic relationship with The Consumer Goods Forum and has co-authored many research reports on the consumer products and retail industry. Amrita Sengupta Senior Consultant, Capgemini Digital Transformation Institute amrita.a.sengupta@capgemini.com Amrita is a senior consultant at Capgemini’s Digital Transformation Institute. She tracks the patterns of digital disruptions across industries and its impact on businesses. Jerome Buvat Global Head of Research and Head, Capgemini Digital Transformation Institute jerome.buvat@capgemini.com Jerome is head of Capgemini’s Digital Transformation Institute. He works closely with industry leaders and academics to help organizations understand the nature and impact of digital disruptions. Mark Taylor Executive Vice President, Chief Experience Officer, Capgemini DCX Practice mark-paul.taylor@capgemini.com Mark is the Chief Experience Officer for Capgemini’s Global Digital Customer Experience (DCX) Practice. He has over 25 years of experience designing, developing and delivering transformative solutions informed by data and enabled by technology. Prior to joining Capgemini in 2014, Mark held senior positions in several global agencies. Amol Khadikar Manager, Capgemini Digital Transformation Institute amol.khadikar@capgemini.com Amol is a manager at the Digital Transformation Institute. He keenly follows the role played by mobile, software and data science in digitally transforming organizations. 32 Conversational Commerce

33. Conversational Commerce at Capgemini How to deliver business value through voice How can Capgemini help? To succeed and build that trusted relation with each individual consumer -at scale- more than tactical investments in technologies are needed. There must be alignment across all business and technology. Capgemini recognizes the value of Conversational Commerce in driving deeper, more human connections at scale. In turn, this will drive a different level of relationship, of engagement, and of brand affiliation. Rather than a threat to existing business models, Conversational Commerce is an opportunity to create a new arena into which consumer-focused industries can grow. We help our clients by blending together end-to-end capabilities on Conversational Commerce, with an approach that demonstrates value, scales the capability, and expands insight-driven business opportunities. • Our digital customer experience capabilities will help you find your voice in conversational commerce. Together we will answer strategic questions on your brand personality and develop a unique, personalized experience with each of your consumers – at scale, with insights from your shopper data. For example, we can leverage our Seamless Consumer Engagement offering and the Origamo framework for ‘Human Loyalty’. Key Capgemini expert: Mark Taylor. • Our global insights and data capabilities bring together leading data technology experts with business and consumer products and retail sector expertise to apply insights via smart analytics to improve conversational business performance. Our experts specialize on Artificial Intelligence, Machine Learning, Natural Language Processing and chatbots, Conversational Data Management and big data platforms to unravel the intelligence from new conversational commerce and shopper data as well as commercial and operational data. Key Capgemini expert: Kees Jacobs • Our global consumer products and retail business and technology capabilities combine a deep understanding of the CPR business operations with a broad knowledge of the key industry technologies. We are helping retailers and consumer product companies to improve their commercial proposition across touchpoints (price, product, place, promotion, content), to reinvent the role of stores and to build supply networks that can meet changing consumer needs through greater speed, agility and efficiency. We are working with key technology providers such as Google, Microsoft, SAP hybris and IBM. A selection of our proposition-assets in the consumer goods and retail industry include the Smart Digital Store and Consumer Driven Supply Chain. Key Capgemini expert: Shannon Warner • Our Applied Innovation capabilities will help you to immerse yourself in the understanding, experimentation and application of all aspects of emerging conversational technologies, as well as to address the business disruptions confronting you and the industry. We will leverage our global network of Applied Innovation Exchanges, our start-up eco-system collaboration and the groundbreaking innovation capabilities of Fahrenheit 212. We offer a methodic approach to innovation, making innovation a predictable driver of sustainable, profitable growth for our clients’ business – in which the focus is broader than the technology, yet to demonstrate business results. Key Capgemini expert: Ben Gilchriest. Business Operations 1. Conversational marketing and content 2. Uniﬁed commerce 3. Conversational service 4. Conversational store 5. Streaming supply chain Customer Experience 1. Voice based dialogue 2. Personal assistance 3. Brand personality 4. Conversational search HELLO! OPEN Intelligence 1. Conversational intelligence 2. Shopper intelligence 3. Commerce intelligence 4. Operational intelligence Capgemini Conversational Commerce Business Capability Model 33

34. Discover more about our recent research on digital transformation Loyalty Deciphered: How Emotions Drive Genuine Engagement Making the Digital Connection: Why Physical Retail Stores Need a Reboot The Disconnected Customer: What digital customer experience leaders teach us about reconnecting with customers Domino’s Pizza: Writing the Recipe for Digital Mastery Privacy Please: Why Retailers Need to Rethink Personalization Digital Transformation Review 6: Crafting a Compelling Digital Customer Experience Rewired: Crafting a Compelling Customer Experience Consumer Insights: Finding and Guarding the Treasure Trove Context First: The Next Wave of Customer Experience Design The Currency of Trust: Why Banks and Insurers Must Make Customer Data Safer and More Secure Driving the Data Engine: How Unilever is Using Analytics to Accelerate Customer Understanding The Digital Culture Challenge: Closing the Employee-Leadership Gap Digital Transformation Review 10: The Digital Culture Journey: All on Board! From UX to CX: Rethinking the Digital User Experience as a Collaborative Exchange Unlocking Customer Satisfaction: Why Digital Holds the Key for Telcos Turning AI into concrete value: the successful implementers’ toolkit 34 Conversational Commerce

35. For more information, please contact: Mark Taylor mark-paul.taylor@capgemini.com Kees Jacobs kees.jacobs@capgemini.com Michael Petevinos michael.petevinos@capgemini.com Gwendolyn Graman gwendolyn.graman@capgemini.com France Arnaud Bouchard arnaud.bouchard@capgemini.com Germany Steffen Elsaesser steffen.elsaesser@capgemini.com North America Shannon Warner shannon.warner@capgemini.com Netherlands Adgild Hop adgild.hop@capgemini.com UK Aurelien Segond aurelien.segond@capgemini.com Global 35

36. About Capgemini A global leader in consulting and technology services, Capgemini is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of 200,000 team members in over 40 countries. The Group reported 2016 global revenues of EUR 12.5 billion. Learn more about us at www.capgemini.com This message is intended only for the person to whom it is addressed. If you are not the intended recipient, you are not authorized to read, print, retain, copy, disseminate, distribute, or use this message or any part thereof. If you receive this message in error, please notify the sender immediately and delete all copies of this message. The information contained in this document is proprietary. ©2018 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.